Zentek Faces Reassessment from Canada Revenue Agency Audit

Zentek Ltd. has announced the completion of a Canada Revenue Agency audit concerning its 2018 and 2019 renunciation of Canadian exploration expenses. These were connected to private placements of flow-through shares with gross proceeds of $4.21 million. The CRA's reassessment impacts approximately $507,000 of expenses renounced in 2018, leading to a tax liability of $59,693 under the Income Tax Act.

The company anticipates a similar reassessment for the 2019 financial year. Subscribers affected by the reclassified expenses will be contacted directly by the CRA. Zentek has committed to indemnify these subscribers for the tax implications within 20 business days, with a potential aggregate liability of $527,000.